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Exercise 14-3
GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31
2017
2016
2017
2016
Increase
(Decrease)
Percentage
Change from 2016
Assets
Current assets
$ 73,500
$ 78,200
Property, plant & equipment (net)
97,100
88,200
Intangibles
Total assets
Liabilities and stockholders' Equity
Current liabilities
$ 41,000
$ 48,400
Long-term liabilities
140,000
150,000
Stockholders' equity
Total liabilities and stockholders' equity
Amount
Percent
Assets
Current assets
$ 73,500
Property, plant, and equipment (net)
97,100
Intangibles
Total assets
Liabilities and stockholders' equity
Current liabilities
$ 41,000
Long-term liabilities
140,000
Stockholders' equity
Total liabilities and stockholders' equity
Exercise 14-3 The comparative condensed balance sheets of Gurley Corporation are presented
below.
GURLEY CORPORATION
Comparative Condensed Balance Sheets
December 31
2017
2016Assets Current assets$ 73,500$ 78,200 Property, plant, and equipment
(net)97,10088,200 Intangibles27,00042,000 Total assets$ 197,600$ 208,400Liabilities and
stockholders’ equity Current liabilities$ 41,000$ 48,400 Long-term
liabilities140,000150,000 Stockholders’ equity16,60010,000 Total liabilities and
stockholders’ equity$ 197,600$ 208,400
(a)
Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2016 as a
base. (Enter negative amounts and percentages using either a negative sign preceding the
number e.g. -45, -45% or parentheses e.g. (45), (45%).Round percentages to 1 decimal place,
e.g. 12.3%.)
GURLEY CORPORATION
Condensed Balance Sheets
For the Year Ended December 31 For the Quarter Ended December
31 December 31
2017
2016
Increase
(Decrease)
Percentage
Change from 2016
Assets
Current assets
$ 73,500
$ 78,200$
%
Property, plant & equipment (net)
97,100
88,200
%
Intangibles27,00042,000
%
Total assets$ 197,600$ 208,400$
%
Liabilities and stockholders' Equity
Current liabilities
$ 41,000
$ 48,400$
%
Long-term liabilities
140,000
150,000
%
Stockholders' equity16,60010,000
%
Total liabilities and stockholders' equity$ 197,600$ 208,400$
%
(b)
Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form
for 2017. (Round percentages to 1 decimal place, e.g. 12.3%.)
GURLEY CORPORATION
Condensed Balance Sheet
For the Quarter Ended December 31, 2017 December 31, 2017
For the Year Ended December 31, 2017
Amount
Percent
Assets
Current assets
$ 73,500
%
Property, plant, and equipment (net)
97,100
%
Intangibles27,000
%
Total assets$ 197,600
%
Liabilities and stockholders' equity
Current liabilities
$ 41,000
%
Long-term liabilities
140,000
%
Stockholders' equity16,600
%
Total liabilities and stockholders' equity$ 197,600
%
Solution
GURLEY CORPORATION Condensed Balance Sheets December 31 2017 2016
Increase (Decrease) % change Assets: Current assets 73500 78200 -4700 -6.0% Property,
plant & equipment (net) 97100 88200 8900 10.1% Intangibles 27000 42000 -15000 -35.7%
Total assets 197600 208400 -10800 -5.2% Liabilities and stockholders' Equity Current
liabilities 41000 48400 -7400 -15.3% Long-term liabilities 140000 150000 -10000 -6.7%
Stockholders' equity 16600 10000 6600 66.0% Total liabilities and stockholders' equity
197600 208400 -10800 -5.2% b Condensed Balance Sheet December 31, 2017
Amount Percent Assets: Current assets 73500 37.2% Property, plant & equipment (net)
97100 49.1% Intangibles 27000 13.7% Total assets 197600 100.0% Liabilities and
stockholders' Equity Current liabilities 41000 20.7% Long-term liabilities 140000 70.9%
Stockholders' equity 16600 8.4% Total liabilities and stockholders' equity 197600 100.0%

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Exercise 14-3GURLEY CORPORATION Comparative Condensed Balance Sh.pdf

  • 1. Exercise 14-3 GURLEY CORPORATION Comparative Condensed Balance Sheets December 31 2017 2016 2017 2016 Increase (Decrease) Percentage Change from 2016 Assets Current assets $ 73,500 $ 78,200 Property, plant & equipment (net) 97,100 88,200 Intangibles Total assets Liabilities and stockholders' Equity Current liabilities $ 41,000 $ 48,400 Long-term liabilities 140,000 150,000 Stockholders' equity Total liabilities and stockholders' equity Amount Percent Assets Current assets $ 73,500
  • 2. Property, plant, and equipment (net) 97,100 Intangibles Total assets Liabilities and stockholders' equity Current liabilities $ 41,000 Long-term liabilities 140,000 Stockholders' equity Total liabilities and stockholders' equity Exercise 14-3 The comparative condensed balance sheets of Gurley Corporation are presented below. GURLEY CORPORATION Comparative Condensed Balance Sheets December 31 2017 2016Assets Current assets$ 73,500$ 78,200 Property, plant, and equipment (net)97,10088,200 Intangibles27,00042,000 Total assets$ 197,600$ 208,400Liabilities and stockholders’ equity Current liabilities$ 41,000$ 48,400 Long-term liabilities140,000150,000 Stockholders’ equity16,60010,000 Total liabilities and stockholders’ equity$ 197,600$ 208,400 (a) Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%).Round percentages to 1 decimal place, e.g. 12.3%.) GURLEY CORPORATION Condensed Balance Sheets For the Year Ended December 31 For the Quarter Ended December 31 December 31 2017 2016 Increase
  • 3. (Decrease) Percentage Change from 2016 Assets Current assets $ 73,500 $ 78,200$ % Property, plant & equipment (net) 97,100 88,200 % Intangibles27,00042,000 % Total assets$ 197,600$ 208,400$ % Liabilities and stockholders' Equity Current liabilities $ 41,000 $ 48,400$ % Long-term liabilities 140,000 150,000 % Stockholders' equity16,60010,000 % Total liabilities and stockholders' equity$ 197,600$ 208,400$
  • 4. % (b) Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form for 2017. (Round percentages to 1 decimal place, e.g. 12.3%.) GURLEY CORPORATION Condensed Balance Sheet For the Quarter Ended December 31, 2017 December 31, 2017 For the Year Ended December 31, 2017 Amount Percent Assets Current assets $ 73,500 % Property, plant, and equipment (net) 97,100 % Intangibles27,000 % Total assets$ 197,600 % Liabilities and stockholders' equity Current liabilities $ 41,000 % Long-term liabilities 140,000 % Stockholders' equity16,600 % Total liabilities and stockholders' equity$ 197,600 % Solution GURLEY CORPORATION Condensed Balance Sheets December 31 2017 2016
  • 5. Increase (Decrease) % change Assets: Current assets 73500 78200 -4700 -6.0% Property, plant & equipment (net) 97100 88200 8900 10.1% Intangibles 27000 42000 -15000 -35.7% Total assets 197600 208400 -10800 -5.2% Liabilities and stockholders' Equity Current liabilities 41000 48400 -7400 -15.3% Long-term liabilities 140000 150000 -10000 -6.7% Stockholders' equity 16600 10000 6600 66.0% Total liabilities and stockholders' equity 197600 208400 -10800 -5.2% b Condensed Balance Sheet December 31, 2017 Amount Percent Assets: Current assets 73500 37.2% Property, plant & equipment (net) 97100 49.1% Intangibles 27000 13.7% Total assets 197600 100.0% Liabilities and stockholders' Equity Current liabilities 41000 20.7% Long-term liabilities 140000 70.9% Stockholders' equity 16600 8.4% Total liabilities and stockholders' equity 197600 100.0%